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Essential Utilities, Inc (WTRG) Fair Value & Analysis

Utilities · US · Market cap $10.9B

EU Essential Utilities, Inc logo Essential Utilities, Inc WTRG · US
Price$39.88
Fair Value$21.81
Upside-45.3%
Quality50/100
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Expensive Growth
Highly profitable · 21.8% net margin
Moderate debt · negative free cash flow
3.51% dividend yield
Mixed vs. peers (8/14)
Wide moat 65/100
Evidence: High Range $16.36 – $31.61 Share as image

Fair value as of: Jul 15, 2026

From 15 valuation models · updated 24 days ago

Share price +2.0% over the past month.

A solid business, but screening 45% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($31.61). The favourable scenario is already priced in.
  • Solid but not exceptional quality (50/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($16.36 to $31.61) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$46.66 $29.61 Fair Value $21.81 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range $29.61 – $46.66 · fair‑value band $16.36 – $31.61 · the $39.88 price screens above the $21.81 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

Full chart & analysis →

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Analysis

Essential Utilities, Inc (WTRG) currently trades at $39.88, while our model-based Fair Value estimate is $21.81, implying the stock looks roughly 45.3% overvalued today. We read business quality at 50/100 (solid quality), in the Utilities sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Essential Utilities, Inc generated revenue of $2.6B at a net margin of 21.8%. Revenue grew 10.0% year over year. It earns a return on equity of 8.3%. Net debt stands at $8.3B. Fundamentals as of Jul 15, 2026

Our scenario range runs from $16.36 (bear case) to $31.61 (bull case); at $39.88, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 4% below its 52-week high and 14% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at -10% fair-value upside, at -45%, WTRG screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income $20.81 $22.71 $29.40 76
ROIC Compounder $4.00 $8.06 72
Gordon GGM $12.10 $25.16 $39.92 70
All 15 models by family
Earnings-Based
Graham-Dodd $14.78 $56.18 $76.07 54
Lynch FV $13.65 $19.49 $25.34 50
PEG = 1.0 $13.65 $19.49 $25.34 46
EPV $4.00 $8.06 59
Dividend Discount
Gordon GGM $12.10 $25.16 $39.92 70
DDM Multi-Stage $12.10 $21.22 $26.41 61
Multiples
P/E Multiple $32.60 $43.46 $54.33 63
P/S Multiple $16.36 $21.81 $27.26 58
P/B Multiple $27.71 $36.94 $46.18 55
EV/EBIT $15.36 $29.97 $44.59 53
EV/EBITDA $17.54 $32.87 $48.21 54
Asset-Based
NCAV (Graham) $12.09 $16.20 $24.18 50
Economic Profit
Residual Income $20.81 $22.71 $29.40 76
ROIC Compounder $4.00 $8.06 72
Growth Earnings
Growth-Adj P/E $24.18 $34.54 $44.90 68

Widest divergence: Growth Earnings ($34.54) versus Economic Profit ($4.00). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) $2.6B
Revenue growth (YoY) +10.0%
Net margin 21.8%
Return on equity 8.3%
Free cash flow −$420M FY2025
P/E ratio 19.7
More key figures
Operating margin 36.1%
EPS (TTM) $1.96
Dividend yield 3.5%
EPS growth (YoY) -23.3%
Net debt $8.3B FY2025

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 38 · Market factors (momentum, volatility) 62

Profitability 37
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 44
Earnings quality: real cash, not paper profit
Fin. Strength 21
Balance sheet, leverage, solvency risk
Investment 39
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 59
Distance to the 52-week high (market factor)
Net Issuance 59
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Essential Utilities, Inc., through its subsidiaries, operates regulated utilities that provide water, wastewater, and natural gas services in the United States. The company operates through Regulated Water; and Regulated Natural Gas segments.

Full company description

Essential Utilities, Inc., through its subsidiaries, operates regulated utilities that provide water, wastewater, and natural gas services in the United States. The company operates through Regulated Water; and Regulated Natural Gas segments. It also provides utility service line protection solutions and repair services to households; gas marketing and production activities; and natural gas distribution services. The company serves approximately 5.5 million residential water, commercial water, fire protection, industrial water, wastewater, and other water and utility customers in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia, and Kentucky under the Aqua and Peoples brands. The company was formerly known as Aqua America, Inc. and changed its name to Essential Utilities, Inc. in February 2020. Essential Utilities, Inc. was founded in 1886 and is headquartered in Bryn Mawr, Pennsylvania.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Essential Utilities, Inc reported revenue of $2.5B in FY2025 versus $1.9B in FY2021, a compound +7.1%/yr. Reported net income was $616M in FY2025, compounding +9.3%/yr from FY2021.

Growth Quality 50/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
$2.5B
Latest YoY
+18.6%
Avg. growth/yr (3Y)
+2.6%
Avg. growth/yr (5Y)
+11.1%
Avg. growth/yr (40Y)
+8.9%
Revenue +7.1%/yr
FY21 $1.9B
FY22 $2.3B
FY23 $2.1B
FY24 $2.1B
FY25 $2.5B
Net income +9.3%/yr
FY21 $432M
FY22 $465M
FY23 $498M
FY24 $595M
FY25 $616M

WTRG screens 45% overvalued. Compare with American Water Works Company →

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Cite: Fair Value Calculator (2026). "Essential Utilities, Inc Fair Value". https://www.fairvalue-calculator.com/stock/WTRG

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Utilities - Regulated Water · 67 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 50 · Above median
Fair Value upside −45% · Below median
Return on equity (TTM) 8% · Above median
Return on assets 3% · Above median
Net margin (TTM) 22% · Top 25%
Operating margin (TTM) 36% · Top 25%
Revenue growth 10% · Above median
Dividend yield (TTM) 3.5% · Top 25%
Debt / equity 1.18× · Higher than 75% of peers

Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper

P/E (TTM) 19.7× · Cheaper than median
P/B 1.60× · Pricier than median
P/S (TTM) 4.29× · Pricier than 75% of peers
EV/EBITDA 14.4× · Pricier than median
PEG 3.67× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 1
FUTURE 50 · sector 28
PAST 33 · sector 29
HEALTH 41 · sector 66
DIVIDEND 70 · sector 49

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
American Water Works Company AWK $134.33 $65.80 -51%
SBSP3 SBSP3 R$29.22 R$31.23 +7%
SBS SBS $5.79 $5.21 -10%
CSMG3 CSMG3 R$66.10 R$60.17 -9%
Grandblue Environment Co 600323 ¥29.42 ¥33.29 +13%
American States Water Company AWR $85.01 $48.02 -44%
Chengdu Xingrong Environment Co 000598 ¥6.97 ¥10.74 +54%
California Water Service Group CWT $49.73 $33.56 -33%
Chongqing Water Group 601158 ¥4.08 ¥2.86 -30%
H2O America, through its subsidiaries, HTO $62.47 $41.30 -34%

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Frequently asked questions

Is Essential Utilities, Inc (WTRG) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of $21.81 versus a price of $39.88, about −45% (overvalued).
What is the fair value of WTRG?
Our model-based fair value for Essential Utilities, Inc is $21.81 (as of Jul 15, 2026), built from audited fundamentals. The current price is $39.88.
What is the quality score of WTRG?
Essential Utilities, Inc has a Quality Score of 50/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Essential Utilities, Inc (WTRG)?
Essential Utilities, Inc reported trailing-twelve-month revenue of about $2.6B (latest available figure, as of Jul 15, 2026).
What is the net profit margin of WTRG?
The net profit margin of Essential Utilities, Inc is about 21.8%, meaning it keeps roughly 21.8% of revenue as net income. Based on the latest reported figures.
Does Essential Utilities, Inc pay a dividend?
Essential Utilities, Inc currently shows a dividend yield of about 3.66% relative to its recent price (as of Jul 15, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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